New Elk Mine ( No Lets Hope!)Cline buying the New Elk Coal Mine, as its next strategic step, appears to be a poor choice.
If Cline buys the New Elk mine, it would appear, they are backing the company on this one asset. This strategy would probably not appeal to the stock market. I doubt we would see much of share price increase, compared to the true value of Clines asset base.
Was it Galactic who had problems in Colorado with the EPA? I am not quite sure if they like Canadian miners in Colorado.
Cline has great assets. Cline has to get these assets into subsidiaries. This allows Cline subsidiaries to take over other similar companies and JV on other similar projects. This would appeal to the stock market, because it appears the company is not backing itself on one asset or one Commodity.
Cline has to re-organize in order for shareholders to get full value from Clines assets.
Cline should not dilute any further trying to prove up small assets. All further asset development, should be performed through focused subsidiaries.
It would be good to see Pintree apply investment banking thinking to the development of Clines assets. It would be good to see Pintree on the board of directors.
Cline share structure is very well developed.
The following is the latest ownership of Cline.
………………………………………………………………………………….
Bates, Kenneth………2,115,000 + 200,000
Taylor, Allan……...........562,593 + 300,000 options
Furth-Bourquin……….3,265,000 + 400,00 warrants
Gormley, Gordon……....500,000 + 589,000 options
Mitsui International…..9,000,000 + 500,000 options + 4,000,000 warrants
Pintree………………..13,733,000 + 600,000 warrants
Approximately 29 Mil shares in control blocks.
Approximately 72.4 Mil shares outstanding
Approximately 40.6% of shares in control blocks.
Pintree..owns 18.9% (this is accurate, I thought it was higher)
Mitsui...owns 12.4%
Bates…owns 2.9%
Furth…owns 4.5%
MP